Mortgage Insurance

You have purchased a new home and now need mortgage insurance. Mortgage Life Insurance is a type of insurance designed specifically to repay any outstanding mortgage debt in the event of homeowner death or long-term disability. It protects the lender and investor, not the homeowner.

You can buy the insurance from a mortgage lender or a life insurance from a life insurance broker. What is the difference?

A lender’s policy covers;

Only the person(s) listed on the mortgage. If two people are covered there is only one payout and the other loses the coverage

Only the balance owning on your mortgage.

The mortgage lender is automatically the beneficiary

The coverage amount decreases as the mortgage balance decreases and the premium remains the same.

When the mortgage is paid off, the coverage ends.

On the other hand a personally owned Life Insurance policy covers;

You, and your family, even those who are not responsible for paying your mortgage.

It can cover your mortgage, and your debts such as your line of credit, credit cards, last expenses, ongoing income for the family,etc.

You designate the beneficiary and how it can be used as paying your mortgage, medical expenses or your child’s education – whatever is best for you in your situation

The amount of coverage stays the same for as long as you own your policy , unless you decide to change it.

Your coverage is not tied to your mortgage, therefore, you can carry it with you if you move again.

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Matson Financial Services Inc.

Matson Financial Advisors is a caring team of service professionals dedicated to meeting the financial goals of our individual and corporate clients. We offer individual attention and tailor our advice to the unique circumstances of every client. Our licensed and experienced staff offers superior client service.